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Sale of Nepali Carpet Slump in International Market

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Sale of Nepali Carpet Slump in International Market
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February 27: Nepali carpet industry is losing its ground in the international market due to its inability to compete with Indian and Chinese carpet industries which are backed by their governments. The Nepali carpet manufacturers have urged the government to provide 15 percent concession for importing their products in order to compete with the neighbouring countries.

Carpet was among the chief products to earn foreign currency till fiscal year 2055/56. Since then, Nepali carpet industry has been struggling to maintain its production due to the increase in manufacturing cost. Nepal imports wool for producing carpet from New Zealand. The cost of wool is much less in India than Nepal due to transportation cost.

China, on the other hand, produces raw materials for carpet on its own. This significantly reduces the production cost, according to Sharad Bikram Rana, executive director of the Trade and Export Promotion Center under the Ministry of Industry, Commerce and Supplies.

According to him, Indian government provides 15 percent concession to export its carpets. On the other hand, Nepal provides only three percent concession for exporting carpet.

“India charges low rate of interest on loans provided to the carpet industries but Nepal charges high rate for the same,” he said, adding, “Even the electricity charge is comparatively less in India.”

The labour cost is also less in India. Due to all these factors, the cost of Nepali carpets is higher than India and China.

Due to these reasons, the sale of Nepali carpets has slumped in the  international market, according to Nepali carpet manufacturers.

 

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